Last week, US regulators discovered Volkswagen had 11million cars with a 'cheat switch' designed to pass emission tests.

And now Audi, a Volkswagen brand, has confirmed 2.1million cars worldwide had this sneaky switch installed.

This means the scandal now affects 1.42million Audi drivers in Europe.

The Volkswagen 'cheat switch' scandal explained

Volkswagen’s chief executive quit after the firm admitted 'manipulations took place in Europe and elsewhere.

And while the details are still emerging, the revelation could have implications for British drivers.

Shazia Yamin, a solicitor from the law firm Leigh Day, said: "Most individuals I have been speaking to are saying they bought these vehicles especially because they got a reduction in tax. So if these vehicles turn out to be less fuel efficient there could be a loss there."

That's because in the UK car tax is based on how much carbon dioxide engines produce - with low-emission vehicles paying nothing at all. If it turns out VW has been fixing its results, the band your car falls into could change meaning you pay more tax.

Other losses could include the fact drivers are paying more for fuel than they expected, extra repair costs and a fall in the price for the vehicles.

Jacqueline Young, head of group litigation at law firm Slater and Gordon, said: "People choose a diesel car because they want economy in fuel and emissions. They pay a premium for that."

Here, we explain which drivers could be affected and what they may be able to do about it.

Which drivers are affected?

Volkswagen says this affects 11million cars worldwide. The problem relates to Type EA 189 engines, which is used in models such as the Golf, Passat and Audi A3.

Other Volkswagen brands are yet to confirm whether the issue has affected them.

If you have a new vehicle with a EU 6 diesel engine, Volkswagen says you’re fine.

"In the event of a UK recall, the manufacturer should initiate contact with you. Arrangements will then be made concerning a repair, likely to be undertaken at a dealer convenient for you," said consumer watchdog Which?

"You should be given a courtesy car while any repair work is being carried out."

Can I make a claim?

Hundreds of drivers have already started calling up Leigh Day to ask whether they may be able to make a compensation claim.

But lawyers are still waiting to hear for sure whether UK cars are affected. As the Audi revelations show, there's still plenty of information yet to emerge.

Meanwhile, the UK and other European governments are investigating the issue.

James Walker, from online complaints resolution service Resolver, said: "If Volkswagen is found to have deliberately misled customers about the emissions or fuel economy of its diesel engines, it will come out.

"At that point a Volkswagen owner may well have cause to seek some form of redress, as their cars may have cost them more than was promised to run, as well as being worth less on the secondhand market."

What does the law say?

According to law firm Leigh Day, the most important domestic law is contained in the following legislation:

But angry Volkswagen drivers may find they get more power from the new Consumer Rights Act, which comes into force in October.

The Consumer Rights Act allows US-style class actions, although in a more restricted manner.

A Leigh Day spokesman explained: “Claimants would have to bring standalone claims for breach of contract and statutory consumer legislation, or join forces to bring a group action proceedings against Volkswagen itself and Volkswagen dealerships.”